CounterPath Announces Proposed Offering of Convertible Debentures
17 November 2005 - 1:32AM
PR Newswire (US)
VANCOUVER, Nov. 16 /PRNewswire-FirstCall/ -- CounterPath Solutions,
Inc. (OTCBB: CTPS), a provider of VoIP (Voice over Internet
Protocol), Video over IP, Instant Messaging (IM), and Presence SIP
softphones, today announced its intention to sell convertible
debentures in the aggregate principal amount of $2 million. The
private placement with the investor will close within one week. The
convertible debentures will be senior unsecured obligations of the
Company at an interest rate of 5% per annum, payable on maturity or
as otherwise agreed to by the Company and the investor, and will
mature two years after issuance. At the option of the investor, the
debentures may be converted into shares of the Company's common
stock at a conversion price of $0.40 per share. The Company has the
option to prepay any outstanding principal and accrued interest
under the debentures with the consent of the investor. Under the
terms of the private placement, the investor will also acquire
warrants for the purchase of up to 2,500,000 shares of the
Company's common stock, exercisable for two years at a price of
$0.80 per share. The Company will not be granting any registration
rights or paying any finder's fees in connection with this private
placement. The proceeds of the offering will be used to (1) expand
the development and marketing of our core products, (2) develop
additional products, and (3) for general corporate purposes. The
securities to be issued in this private placement have not been
registered under the Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or
an applicable exemption from registration requirements of the
Securities Act of 1933. For more information, please contact: Todd
Hanas Tiffany Zinck Investor Relations Media Relations
1-866-869-8072 (604) 320-3344 extension 208 DATASOURCE: CounterPath
Solutions, Inc. CONTACT: Todd Hanas, Investor Relations,
1-866-869-8072, ; Tiffany Zinck, Media Relations, (604) 320-3344
extension 208,
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